ZSE maintains momentum

THE Zimbabwe Stock Exchange (ZSE) industrial index advanced 4,83 points week-on-week to close at 209,93 points on Wednesday as local appetite for stocks persists.

The mining index rose 1,12 points to 74,11 points yesterday, from 72,99 points during the same period the previous week.

The surge built on gains registered last month when the industrial index added 3,71 percent to 203,25 points, its highest for over three and half years, driven by the gains in most heavyweights and bargain hunters.

The mining index had, however, eased 0,5 percent to close at 69,79 points in July.

Yesterday, heavyweight counters maintained their charge, with Hippo putting on $0,0300 to end at $0,9425. CFI Holdings, which was entangled in a bidding war between two major shareholders, advanced a further $0,0159 to trade at $0,5433.

CFI's share has risen sharply amid a bidding war by its major shareholders. CFI has announced that a mandatory offer to buy out minorities by Stalap, an investment vehicle controlled by the National Social Security Authority (NSSA) and Zimre Holdings, with a 41 percent stake in CFI, failed to garner any votes. This was after the CFI share price rose from 18 cents when Stalap's 22 cent per share offer was announced on July 13, to 54,33 cents yesterday.

The price rose as Stalap's rival shareholder in CFI, Nicholas van Hoogstraten's (pictured) Messina Investments, went on a buying spree. Messina also made an informal offer to buy CFI stock at 46 cents on July 27, drawing rebukes from both the ZSE and the Securities Exchange Commission.

The ZSE's largest counter, Delta, was also among the gainers yesterday, putting on $0,0098 to close at $1,2898, a day after a Harare magistrate quashed criminal charges brought against the company for allegedly selling alcohol without an agent liquor licence. Seedco put on $0,0065 to trade at $1,4800 while Padenga's share price went up $0,0039 to trade at $0,3040.

The mining index rebounded 0,19 points (0,26 percent) to end at 74,11 points. RioZim was up by $0,0025 to close at $0,6025.

In July, the ZSE market capitalisation rose by 1,12 percent, from $5,7 billion the previous month to $5,76 billion, the highest since July 2013 when it clocked $6 billion.

Year-on-year, the market capitalisation has improved by 111,6 percent.

Total market turnover dropped 37,78 percent to $24,7 million from $39,7 million recorded in the previous month.